1. Five-Minute Settlement Program: Information Session 1
AEMO 5MS Program Team
THURSDAY, 24 MAY 2018
AEMO Offices:
Level 9, 99 Gawler Place, Adelaide
Level 10, 10 Eagle Street, Brisbane
Level 22, 530 Collins Street, Melbourne
LEVEL 2, 20 BOND STREET, SYDNEY
DIAL IN: MEETING ID:

2. Introduction, agenda & housekeeping
Welcome to the 5MS program!
Agenda:
Questions from the floor after speakers onsite.
Mail questions from phone participants – to be answered at the end.
On the phone please mute microphones throughout!
Item
Time
Topic
Responsible
9:30 am – 9:40 am
Welcome and introduction
Chin Chan (AEMO) 1
9:40 am – 10:10 am
Program overview
Graeme Windley (AEMO) 2
10:10 am – 10:30 am
Procedure Workstream overview
Chris Muffett (AEMO) 3
10:30 am – 11:00 am
Systems Workstream overview
Hamish McNeish (AEMO)
11:00 am – 11:10 am
Break 4
11:10 am – 11:30 am
Stakeholder engagement overview 5
11:30 am – 11:50 am
Global settlement update
Lee Brown (AEMO) 6
11:50 am – 12:30 pm
Questions
 12:30pm
Meeting close

3. Five-Minute Settlement Program
Program Overview – Graeme Windley

4. 5MS Summary AEMC Decision
On 28 November 2017, the AEMC made a final rule change altering the settlement period to five-minutes (align with dispatch period). The industry go live is 1 July Purpose of rule change:
To remove the anomaly that exists between the five-minute and 30-minute periods, which has been identified as a contributing factor to disorderly bidding.
To provide a clearer price signal for investment in fast response technology, including batteries and demand response.
 Key functional implications of 5MS include:
Metering
Central systems acceptance of five-minute metering data from the market.
Adjusting interval meters to deliver data at five-minute intervals.
Re-accreditation of all MDPs and MPs intent on providing five-minute metering services.
Controlled Load Profile (CLP) and Net System Load Profile (NSLP) change from 30-minute to five-minute.
Potential changes to the frequency of which Metering Data is delivered.

5. 5MS Summary Settlement Calculation
Profiling algorithms introduced to derive five-minute energy data.
Transactions will need to be calculated for each five-minute period.
The process of settlement estimation will also calculate energy transactions for every five-minute period.
Inter-regional and intra-regional residue will be calculated on a five-minute basis.
A number of non-energy transactions, such as market ancillary services (i.e. FACS) and compensation recovery, will be completed using five-minute energy volumes.
Dispatch & Market Information
Daily bidding intervals to increase from 48 to 288. AEMO will create new data structures to receive, use and store five-minute bids and offers.
30-minute pre-dispatch and PASA processes that use bid information will be provided with five-minute data.
Market participant systems will need to be updated to submit and receive confirmations of five-minute bid and offer data.
AEMO will publish five-minute data.

6. Program Overview Procedures – Market Go Live 1 December 2019
Detailed market design – detailing the operation of core market processes, roles and responsibilities, timelines and information flows.
Procedure development and engagement based on the rule change.
Procedure consultation with relevant industry participants, staggered approach.
Supporting documentation used internally by AEMO.
B2B procedures – support for B2B teams in case of change.
IT Delivery
Requirement drafting for 5MS & GS, application, interfaces & infrastructure.
Technical infrastructure build.
System development and delivery.
Internal AEMO Testing.
Performance Testing.
Pre-Prod and Prod system deployments.
Operational Support.

7. Program Overview Readiness
Registration and Accreditation, including Meter Data Providers & Meter Providers
Market participant readiness monitoring
Industry Testing / Market Trial
AEMO Operating procedure review
Operational plan, including KPIs, SLAs, compliance register and risk register
Program communication
Industry cutover activities
 Industry Groups and Forums
Numerous consultative groups to be set up
Detail to come in Stakeholder session

8. Program Overview

9. Next steps Procedures stage progressing, delivery by 1 December 2019.
Systems design & planning to Q3/Q4 2018:
Impact of increase in data volumes
Integration of industry initiatives:
Global Settlement rule change; Distributed Energy Register; 3rd Party Access to data.
Industry requirements
Combined planning approach to begin June 2018
Mail key requirements / concerns to

10. Five-Minute Settlement Program
Procedures Workstream – Chris Muffett

11. Procedure background
The five-minute settlement rule requires AEMO to amend a number of specified procedures prior to 1 December 2019:
Credit limit procedures
Spot market operations timetable
Dispatch and pricing procedures
Reallocation procedures
Settlement residue auction rules
RERT and intervention pricing
Minimum services specification
Meter churn procedures
Metering data provision procedures
MSATS procedures
Metrology procedures
Service level procedures
B2B procedures (subject to IEC approval)
There are also a large number of procedures and guides that are impacted by changes in terminology

12. Procedure approach
Approximately 70 procedures and guides have been identified as directly impacted by 5MS, across the following areas:
Metering
Settlements (including prudentials)
Dispatch
Power system
Preliminary approach is to address these in packages, with 15 work packages being identified
Work packages will progressively be considered by the Procedure Working Group (PWG):
AEMO will provide an impact assessment for each procedure, and the proposed approach and options for review and discussion
Procedure changes will then be subject to formal consultation

13. Procedure work packages (preliminary)
Metering
Settlements
Dispatch
Power system
Metering data
Metrology
MSATS procedures
Service levels
Miscellaneous
SRA
Estimation
Reallocations
Prudentials
Bids/Offers
Spot market
Pricing
Specifications
No packages – progressive release

14. Next steps
AEMO is currently working through the impact assessment for procedures
Detailed list of impacted procedures/guides will be provided to the PCF
Feedback will be sought on the scope and packaging approach
PWG to be established, with working group meetings aiming to start in July 2018
Initial focus is on SRA, with changes required prior to September 2018 (subject to SRC approval)
Priority to packages that involve key system changes for AEMO and industry, such as metering data and bids/offers

15. Five-Minute Settlement Program
IT Workstream – Hamish McNeish

16. IT Workstream - Engagement
AEMO’s Systems Workstream is responsible for the development and testing of systems to support the 5 Minute Settlement (5MS) changes to rules and procedures. A Systems Working Group (SWG) will be established to: 1. Inform and consult with participants on the technical aspects of these changes 2. Provide and discuss information on AEMO’s technical solution relevant to participants 3. Provide a contact point for participants to engage on any technical questions 4. Meet regularly during the 5MS program. The timetable is still to be confirmed – this is expected to be at least monthly.

17. IT Workstream – SWG Deliverables
System Workstream updates – regular updates will be provided in the System Working Group
Technical specifications – will provide sufficient detail for participants to understand the required changes to their own systems/processes that interface with AEMO and timelines.
Focus Groups – may be held to discuss a specific design area – or determine recommendations on solution design.
Likely Focus Groups:
Meter Data submission
Energy/FCAS bidding functions
Metering Reconciliation (B2M)
Settlement Reconciliation (Data Interchange)
System implementation timeline –timeline of when environment/system capability will be available to participants

18. System Interface Changes - Retail
Electricity Retail (MSATS/B2M/B2B)
The expected changes are:
Support 5 minute metering data submission to AEMO
Either a new or use existing MDFF format for 5 minute submission
Changes to MDM profiling for settlement to support 30-minute, five-minute and accumulation meter data
Interfaces Impacted
1. B2M metering submission to AEMO
LVI, FTP and MSATS Web Services
2. B2B metering to support 5 minute MDFF
LVI, FTP and B2B Web Services
3. MDM reconciliation reports
FTP B2M reports

19. System Interface Changes - Wholesale
Electricity Wholesale (EMMS)
The expected changes are:
Submission of 5 minute bids/offers
Changes to accommodate 30 minutes processes (e.g. pre-dispatch, PASA)
Spot price will be applied at 5 minute interval
Settlement and Prudential processes
Bidding and settlement reports
Interfaces Impacted
1. Bid and offer submission and response
Web Portal, Data Interchange
2. Bid/Offer, Settlement reconciliation reports
Data Interchange
3. Prudential systems

20. IT Workstream Timeline – Indicative
Timeframe
Activity
1-Apr to 30-Sep
Feasibility Study
Sep-18 to Feb-21
Monthly SWG’s and SWG Focus Groups as required
Oct-18 to Nov-20
AEMO Development and Testing
2019 Q1 – Q4
Technical Specifications
2020 Q3/Q4
Industry Test Systems and AEMO software/guides available
Preproduction Release – Stage 1
- Early 5MS capabilities
2020 Q4
Preproduction Release – Stage 2
- Full 5MS functionality
Production Release – Stage 1
- Early 5MS capabilities (support transition)
2021 Q2
Production Release - Stage 2

21. Five-Minute Settlement Program
Stakeholder Engagement – Chris Muffett

22. Purpose of engagement
The 5MS program is engaging with the industry for the purpose of:
Informing stakeholders and the wider industry on the details of AEMO’s implementation program for 5MS and GS, and how they can become further involved
Consulting with stakeholders to seek input on the changes to procedures necessary to give effect to 5MS and GS
Involving stakeholders throughout the process to ensure that their ideas and concerns are understood and considered
Continuous engagement will be critical to successful implementation of 5MS and GS

23. Program engagement structure

24. Program forums and groups
Purpose
Timing
Program Consultative Forum (5MS-PCF)
The primary program coordination and communication between AEMO and industry program teams (meets monthly)
Monthly, starting June 2018
Executive Forum (5MS-EF)
Provide appropriate level of executive oversight and escalation of issues and concerns (meets quarterly)
Every 2 months, starting July 2018
Procedure Working Group (5MS-PWG)
To facilitate the consultation on procedures, with focus groups for dispatch, metering, and settlements
Monthly, starting July 2018 (focus groups as required)
Systems Working Group (5MS-SWG)
To facilitate design and implementation of systems and interfaces, with focus groups covering retail and wholesale interfaces
Monthly, starting September 2018 (focus groups as required)
Readiness Working Group (5MS-RWG)
Formed in the lead-up to industry readiness testing, to support the planning and execution of readiness activities
Monthly, starting mid-2019

25. Next steps Terms of reference: Nominations: Contact details:
ToRs for the PCF and EF have been developed (will be published shortly)
ToR for the PWG has been drafted, and input will be sought through PCF
Nominations:
AEMO will be seeking nominations for the PCF and EF ( will be distributed through NEMW-CF and AEMO Communication)
Proposing a primary and backup representative from each organisation
Contact details:
5MS
5MS webpage: Electricity-Market-NEM/Five-Minute-Settlement

26. Five-Minute Settlement Program
Global Settlement Rule Change – Lee Brown

27. Background
AEMO has submitted a rule change to the AEMC, proposing that global settlement be implemented to replace settlement-by- difference in the NEM settlement-and-market-reconciliation
The change primarily involves the following:
The local retailer role no longer being required (i.e. all retailers have the same settlement arrangements)
AEMO requiring meter data for all connection points
AEMO calculating unallocated for energy (UFE) which is recovered from retailers operating in each area
The AEMC have indicated that consultation on the rule change will commence shortly
Global settlement (GS) is proposed to replace the existing settlement- by-difference arrangements in the NEM

28. Program approach
AEMO has identified benefits in implementing GS at the same time as 5MS
GS impacts the same procedures and systems being updated for 5MS
Feedback from stakeholders also supports this approach
AEMO understands the AEMC’s proposed timing is for a final determination to be made by end-2018
The program is being planned on the basis of delivering the capability for GS (as per AEMO’s high-level design), which will be amended based on progress of the rule change
AEMO proposes to build capability for global settlement as part of the 5MS program

29. Next steps Consultation will shortly commence on the rule change
Impact assessment on procedures will be discussed with the PWG:
Changes to data delivery requirements will be considered as part of the meter data package and service level packages
System impact will be discussed once the SWG is established:
Changes to metering and settlement interfaces
Contact details:
Lee Brown:
AEMC will shortly initiate consultation on the rule change